Joel Beck

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Copyright 2007-2014

The original works appearing on this page are the intellectual property of Joel Beck and The Beck Law Firm, LLC. Copyright 2007-2014.

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I welcome comments on most postings, and like to keep the discussion going. Comments are moderated and will not post until publisher review. Comments that don't relate to the topics and subject matter of the blog, and seek only to provide links for other websites, will not not be published. The Beck Law Firm, LLC and Joel Beck are not responsible for contents of the published comments, and do not necessarily share the same views as the commenter.

July 2014

July 30, 2014

FINRA's Market Regulation Department is conducting a targeted examination of broker-dealers relating to "order routing and execution quality of customer orders in exchange listed stocks" Their sample information and document request letter to firms is online and indicates that the review period is from January 1, 2014 to the present (July 2014). In addition to documents, the FINRA staff seeks an explanation of, among other things, how the firm makes decisions for placing certain orders, how it uses "reasonable diligence" to ascertain the best market for customer orders, and who must approve order-routing decisions.

In my experience, the fact that a firm receives the targeted letter doesn't necessarily mean that the staff believes that any improper conduct has occurred at that firm. And, while not all firms will receive a letter like this, knowing that the regulators are reviewing this area and understanding the questions they are asking and the information they are seeking can provide firms with some insight into some potential regulatory concerns that might find their way into a firm's next routine examination.

July 28, 2014

Without question, whenever a broker is facing a regulatory enforcement action that could lead to a bar or suspension, they have a lot of questions. What is a bar? What is a suspension? How does it work, and what does it mean, exactly? These are very good questions, and brokers should certainly understand that ramifications of any settlement to which they might enter, or the possible results of a litigated disciplinary proceeding. And, in addition to understanding the end result of the FINRA action, the broker should understand how it might affect their employment/registration status with their current firm, with future potential firms, with state regulators, and with clients and prospective clients. You see, there's more than meets the eye with a suspension or bar. So, we believe that wise brokers will be seeking the advice of experienced regulatory counsel to help them make the best decisions possible - and to obtain the most favorable outcome possible - when their careers may be on the line.

In this short video blog filmed at the old Lawrenceville city jail (pictured above) that is attached to the rear of our office building (which was formerly the city hall), I'll provide a basic overview of bars and suspensions in FINRA enforcement cases. Check out our other videos on sanctions here on the blog and our youtube channel, and the ones to come.

July 24, 2014

A question I get from time to time from clients and others is along the lines of, "What exactly can happen to me if FINRA thinks I did something wrong?" The follow-up questions concern the different types of sanctions that can be imposed in a FINRA disciplinary action. And, on occasion, some folks will ask if they can wind up in jail as a result of a FINRA examination. To help address some of these common questions, we'll do a series of posts on sanctions, with a goal of providing you with an overview of what is possible, generally, and then in other posts drill down some and look at sanctions for some common rule violations.

I thought a fitting backdrop for this first video providing a general overview of sanctions would be the old Lawrenceville city jail (also pictured to the left). It is attached to the back of our office building in downtown Lawrenceville. While it is offices and retail now, in its first life, the building was the city hall, housing the police department and, of course, this jail. If you ever take the walking ghost tour in Lawrenceville (put on the the Aurora Theater), you might get a visit to this place, and hear some interesting stories.

In this short video, I'll provide a general overview of sanctions in FINRA enforcement cases.

July 22, 2014

Earlier this month, FINRA's Board of Governors met for their July meeting. Chair Richard Ketchum and lead governor Jack Brennan prepared a short video overview of the results of that meeting. That can be found online here. Of note, they discussed the current status of FINRA's CARD proposal and modifications to their rule proposal for that planned system. The revised rule proposal will be published in a Regulatory Notice for which they will seek comments, and then, after review of same, FINRA plans to submit a rule proposal to the SEC for consideration by the end of the year.

July 15, 2014

In our view, a durable power of attorney is a key piece of a basic estate planning package that includes a last will and testament and a Georgia advance directive for healthcare. Often, people have questions about what this document does and why they might need it. In this short video, I'll share an overview of the basics of the durable power of attorney in Georgia and how it can be used.

July 10, 2014

FINRA Rule 3240 sets requirements and limitations on a registered person's ability to borrow from, or lend to, a client. In this short video, attorney Joel Beck discusses the basics of compliance with this rule, to help brokers understand their obligations and avoid possible regulatory trouble.

July 05, 2014

Broker-dealer auditors must meet the requirements of the Public Company Accounting Oversight Board (PCAOB). To assist these auditors, the PCAOB staff recently issued a report of staff guidance for these auditors. PCAOB Chief Auditor Martin F. Baumann is quoted in PCAOB's news release stating, "Auditors of broker-dealers are now subject to new requirements, including the requirement to apply PCAOB standards. This publication discusses how audits can be scaled, based on the size and complexity of the broker-dealer, to apply PCAOB standards and fulfill their important role of helping to protect customers of broker-dealers."

July 01, 2014

Wow. July 1st is here already. That means that half of 2014 is now in the books. I hope that Q1 and Q2 went well for you.

Now that we've entered Q3 and the second half of the year, this is a great time to assess your goals, both business and personal. How are you doing in meeting them? What adjustments might need to be made to stay on track or get to where you want to be in the second half of 2014? As you look at action steps, here's a few reminders to consider broken down by our practice areas:

Financial markets: Be sure that annual action items are scheduled and are being completed. This may include annual compliance inspections and internal reviews, annual filings, audits, supervisory reviews, etc. Consider the upcoming license renewal issues and get a head start. Conduct annual compliance meetings/training with staff and evaluate annual disclosure statements.

Estate planning: During 2014, be sure to review your will, power of attorney and advance directive for healthcare. Evaluate them in the context of any recent changes in your life, including marriage, divorce, birth/adoption of a child, significant increase/decrease in assets. Make sure you have the appropriate folks named as executors, trustees,guardians healthcare agents, etc.

Small business law: Be sure that you're using written agreements with customers, evaluate risk management weaknesses, conduct annual shareholders'/members'/partners' meetings and document them with minutes for the company records.

Speaking of goals, I'll accomplish one of mine on Friday, when I run in the Peachtree Road Race, a 10K event in Atlanta. I'll be the guy going slow and sweating a lot, but, I'm going to accomplish the goal.

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Nationwide Securities Lawyer - Contact Us Today

We help brokers and advisers across the country with their federal securities regulatory matters. To discuss your situation, contact Joel Beck at The Beck Law Firm. (678) 344-5342 or send an email to info @ thebeckfirm.com (Don't send any confidential information until we request it, and understand that the firm does not represent you until a written engagement agreement is signed).